Advice 1: How to calculate the weighted average cost

Monitoring of the new market of goods and services begins with marketing research, which among other results has to provide the customer with a parameter that economists call the weighted average price.
How to calculate the weighted average cost
Instruction
1
The price of a certain type, which is calculated by dividing the total amount of all transactions with a specified financial instrument for a specific period of time, the total number of financial instruments on specific transactions, is called a weighted average price.
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The average value is important in all areas of the economy. Accounting uses a weighted-average cost at the end of the month. It is calculated as "Balance at the beginning of the month + ward for the whole month." Remember the formula that calculates the weighted average price, as follows: x P1 X1 + P2 X2 x + ... + PNx XN, where X1, X2,..., X N - the prices at which sold goods of the same category within a short period of time (e.g., one quarter);P1, P2 ... PN "volume" of goods sold at fixed prices.
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This definition is better to consider a specific example. Imagine an organization that for years has sold 15 caps for the quarter in three batches at different prices. For the first batch she sold 5 pieces of caps for the price of 330 rubles (without VAT), the price for 1 piece 64 rubles. For the second batch, sold 6 pieces at the price of 430 (excluding VAT), the price for 1 piece 70 rubles and the third party have sold 3 pieces at a price of 240 rubles (without VAT), the price for 1 piece of 80 rubles.Now calculate the weighted average price: 64 rubles x 5/15 + 70 rubles x 6/15 + 80 rubles x 3/15 = 65 rubles.
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The volume of goods sold at a fixed price, defined as the ratio of the number of products to the total number sold during a certain period of time ( e.g., one quarter) of goods.Based on this formula, you can expect the average prices in different sectors of the economy. It remains only to substitute the desired values.

Advice 2 : How to calculate average cost of goods

Calculating the amount of the forthcoming investment and procurement, it is sometimes necessary to calculate the average cost of the goods. However, when the goods are heterogeneous, the conventional methods of calculating average cost is not good. In this case, use weighted grades.
How to calculate average cost of goods
Instruction
1
You first need to understand why the usual method, the average valuation of the product is not suitable for use. Price list of any company involved in the trade, usually several hundred SKUs. It rarely happens that they are the productof the mi-substitutes, competing with each other. This range is ineffective and generally leads to a contraction of demand, rather than expansion and revenue growth. So usually every company tries to occupy a niche in different product groups. It is obvious that to calculate the average cost of goods by dividing the total price by the number of positions is impossible. The resulting number will reflect "the average temperature in the hospital".
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Therefore, the more accurate is the calculation of the average arithmetic weighed. It is produced in two stages. To calculate average cost of goods, break the range into groups of homogeneous goods can be compared by price. Within each group determine the average cost of conventional products division of price by quantity. Next, find the proportion of each group in total production volume.
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Then, to calculate average cost of goods, multiply the percentage of each group in the total number of products at the appropriate average prices. Thus obtained, the final price will be much more accurately reflect the average cost of the goods. However, even this option may not be suitable, if products is too heterogeneous, for example, food products and industrial goods. In this case it is more correct to calculate average cost of goods for each product.

Advice 3 : How to calculate cost of capital

The rate of return paid to the investor as a fee for providing capital for enterprises that use this capital, the value of its price. For the investor the price of invested capital is the opportunity cost arising from the loss of the ability to use the funds in any other way.
How to calculate cost of capital
Instruction
1
When calculating the price of capital , find out in the first place, the composition of the funding sources to be considered, as well as those who can not be taken into account. Select the sources of funds for the use of which will not have to pay interest. This is the accounts payable for the payment of goods and services tax obligations. They result from the ordinary activities of the entity and in determining the price of capital not taken into account.
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Expect the aggregate price of capitalon the basis of each funding source. The cost of capital from the bonds will be determined as follows: = (N x q + (N – P)/n) / ((N + 2 P)/3), where N – nominal bond value; R – the amount received from one bond; Q – value coupon interest rate.
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When evaluating the cost of Bank credit in mind that the price of capital in this case will be determined by a complete return of the transaction, which depends on cash flow. If the enterprise-the borrower does not incur any additional cost, then the cost of the loan will equal the interest rate. In the presence of any additional costs the cost will increase. But, as practice shows, this difference is small - no more than 1-3 %.
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When placing of ordinary shares the company also pays for attracting capital. This fee will be the amount of dividends. The cost of this source of Finance you can calculate as follows: = D / Pm (1 – L) + g, where C is the cost of equity capital; P - market price per share (the offering price); D – the value of the dividend paid in the first year, g is growth rate of dividend; L – the rate reflecting the costs of emissions (in relative value).
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The aggregate price of all capital (all funding sources) you can define by the formula weighted arithmetic mean:SK = Sum (CI x Wi), where CI is the cost of each source of financing; Wi – share of each source in the structure of capital.

Advice 4 : How to calculate the weighted average cost

Monitoring of the new market of goods and services begins with marketing research, which among other results has to provide the customer with a parameter that economists call the weighted average price.
How to calculate the weighted average cost
Instruction
1
The price of a certain type, which is calculated by dividing the total amount of all transactions with a specified financial instrument for a specific period of time, the total number of financial instruments on specific transactions, is called a weighted average price.
2
The average value is important in all areas of the economy. Accounting uses a weighted-average cost at the end of the month. It is calculated as "Balance at the beginning of the month + ward for the whole month." Remember the formula that calculates the weighted average price, as follows: x P1 X1 + P2 X2 x + ... + PNx XN, where X1, X2,..., X N - the prices at which sold goods of the same category within a short period of time (e.g., one quarter);P1, P2 ... PN "volume" of goods sold at fixed prices.
3
This definition is better to consider a specific example. Imagine an organization that for years has sold 15 caps for the quarter in three batches at different prices. For the first batch she sold 5 pieces of caps for the price of 330 rubles (without VAT), the price for 1 piece 64 rubles. For the second batch, sold 6 pieces at the price of 430 (excluding VAT), the price for 1 piece 70 rubles and the third party have sold 3 pieces at a price of 240 rubles (without VAT), the price for 1 piece of 80 rubles.Now calculate the weighted average price: 64 rubles x 5/15 + 70 rubles x 6/15 + 80 rubles x 3/15 = 65 rubles.
4
The volume of goods sold at a fixed price, defined as the ratio of the number of products to the total number sold during a certain period of time ( e.g., one quarter) of goods.Based on this formula, you can expect the average prices in different sectors of the economy. It remains only to substitute the desired values.
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